Z Co. adopts a plan of complete liquidation and makes the following pro rata distributions to...

  

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Z Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals and each has a $2,000 basis in the Z Co. stock): A Cash B C Capital Asset D Capital Asset FMV Capital Asset BASIS $50,000 $10,000 MORTGAGE $80,000 $1,400 BASIS $3,000 (Assume that Z Co. acquired the property distributed to D in a Code § 351 transfer 6 months before adopting a plan of liquidation when the FMV of the property was $1,800 and Z Co.'s basis was $3,000) E Inventory FMV $50,000 BASIS $20,000 MORTGAGE FMV BASIS $40,000 $30,000 $10,000 $20,000 FMV B's basis in the property received is O $10,000 $20,000 $30,000 None of these. Z Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals and each has a $2,000 basis in the Z Co. stock): A Cash B C Capital Asset D Capital Asset FMV Capital Asset BASIS $50,000 $10,000 MORTGAGE $80,000 $1,400 BASIS $3,000 (Assume that Z Co. acquired the property distributed to D in a Code § 351 transfer 6 months before adopting a plan of liquidation when the FMV of the property was $1,800 and Z Co.'s basis was $3,000) E Inventory FMV $50,000 BASIS $20,000 MORTGAGE FMV BASIS $40,000 $30,000 $10,000 $20,000 FMV B's basis in the property received is O $10,000 $20,000 $30,000 None of these.

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